This is one question, please answer both parts. Question 32 Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows: Purchase in Year 0.............. $ -2,750,000 Year 1.. 180,000 Year 2 276,000 Year 3.... 220,000 Year 4.... 239,000 Year 5 250,000, and a sale $3,190,000 takes place EOY 5 The company's weighted average cost of capital that they use as their discount rate for such calculations is 8% In the Kent LLC example above, assume that the company bought the office building using 70% mortgage debt at an interest rate of 4.00% over 240 months. a. What is the leveraged IRR of the project? 32.15% 24.5896 21.48% 22.85% b. Using the company's hurdle rate (discount rate) for leveraged projects of 9.00%, what is the leveraged NPV of the project? $ 577,943 $ 893 210 $ 591,450 $ 953,378